Written by: Ollie Style-
Is MLM Dead?
A lot of people say that MLM is dead specially those who've been with successful network marketing programs. But is MLM really dead? If you look around there are still operational MLM companies, specially the ones with legitimate products to offer.
I joined a lot of MLM companies before but I never really pushed it as much as I should because at the back of my mind I always thought that I would never really earn from it and that the company who is promoting the MLM scheme is the only one who is earning.
I've talked to some people who've been members of Networking companies who earned hundreds of thousands, some even earned millions.
If a lot of people are earning big what happened to MLM companies who closed shop?
Here are the reasons why they folded:
No product
Some companies have no product to sell they only have the MLM scheme, and this is what the government call "Pyramid Schemes" because they simply build the network without any product and such companies where stoped by the government and thus no longer exist.
Product is simply a front
Some companies have their own product, but their product was simply a front to lure people to join their network and to dish out money. You could spot this kind of company easily because the membership fee, most of the time, is higher than the cost of two products combined. What these companies do is recruit people and build their money making pyramid that's why eventually they closed down.
The product was not good enough
There where even companies who really don't care about their product, they get anything in the market just to show the government that they have a product to back up their MLM scheme, and because they don't have a good product, people did not bother to become members.
Bad Checks or no Checks
Members usually get their commissions via check, but some companies fail to give the appropriate commissions to their network members. Some companies even have bad checks.
Relied solely on the network
Their are network companies who solely rely on a single network and did not bother to develop other networks within the organization, as a result they ended up with nothing once the membership and the sales went down.
Did not promote the MLM business properly
Other companies did not promote their networking schemes properly that's why they are no longer around.
Their products were priced too high
Pricing the products too high is one sure way of losing network marketers.
Lost their credibility with the general public
When a networking company loses it's credibility it will stop attracting members, and few or no members means no business.
The owner ran away with the money
We've all heard this before the owner spent the money on casino or invested the network companies money somewhere else, that's why they don't have the money to pay their networkers and so the business ended.
Bad speakers
Some companies have motivators who are really not convincing, that's why they did not last and folded.
Not genuinely concerned with the business
Networking companies who do not have a genuine concern about their business eventually ended up closing their doors permanently.
Did not believe in the system
Like me people did not really believe in the system, and there was no effort from the company to sway the non believer to believers.
No Explanation
The companies did not explain to their members that they need to work really hard to grow their network, and that they should treat the network as their own business not just another side business.
Did not motivate their members properly
Of course people surely will get motivated when they hear someone making a lot of money out of the network marketing scheme, but money is not the only reason you should go into business, and because MLM should be treated like any other business people were no longer motivated when they did not get the cash they where longing for.
People were feed up with the MLM scheme
Because of the bad reputation of some MLM companies a lot people gave up on MLM, and even those who are professional network marketers gave up because it's really hard to convince people to join a network marketing scheme.
Some MLM companies are still around while others folded. Those MLM companies who are still around as I've said have a solid product line that their members could purchase and resell while those companies who folded simply based their network marketing schemes on the network or the group that they are building. That's why when the group or network marketers moved on the company folded.
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